The Tehran Stock Exchange (TSE)'s overall index notched up 1.98 percent in five days of winning streak to spur expectations that the equity market is getting back on track.
All indices contributed to the TEDPIX rally, which was trimmed by the end of trading hours, with the free floating index leading the gainers.
Most listed firms at the TSE settled in red, however companies with the highest market caps, which are more likely to uncover their hidden potential once Iran and the P5+1 clinch a nuclear accord, pulled up the benchmark to help maintain the winning streak.
According to TSE data, the TEDPIX rose 142.2 points or 0.22 percent to notch a new record high since February 8. The first market index gained 133 points or 0.28 percent to end at 48,082.6. The second market index ticked up 93.7 points or 0.07 percent to stand at 127,368.7. The free float index pulled up 269.6 points or 0.36 percent to settle at 74,665. The industry index was up 38 points or 0.07 percent to finish at 54,022, and the blue-chip index 13.7 points or 0.47 percent to 2,926.5.
> Trade Volume, Value on Surge
More than 2.17 trillion shares changed hands to underscore fresh inflows at the equity market and new record high in trade volume within the past couple of weeks. Moreover, trade value reached almost 5 trillion rials, which indicated close to 120 percent growth compared with the prior trading day.
High trade volume in an uptrend heralds an upcoming bullish sentiment ahead, which is more likely to attract new inflows from rival markets. Despite the fact that lingering ambiguities due to the sagging global economy and tumbling oil prices are trimming speculations about a tangible economic growth, investors are mulling over shoring up their portfolios.
National Iranian Copper Industries Company (NICIC) surpassed positive contributors and had the greatest contribution to the benchmark, after news broke that copper at the London Metal Exchange (LME) is near two-week high. London copper edged higher on Monday, towards a 10-day top hit the session before, as a lull in the US dollar strength ahead of a monetary policy meet this week eased pressure on commodities, Reuters reported.
Saderat Bank and Tejarat Bank with almost 66 and 36 points positive contribution to the TEDPIX followed the NICIC, and took the second and third place respectively.
> Bolstering FSF
The National Development Fund of Iran (NDFI) is authorized now by the parliament to invest up to one percent of its capital in the capital market's Financial Stability Fund (FSF), boursepress reported.
According to the report, the NDFI can annually invest 1 percent of its capital, which has been deposited in banks at the FSF. In addition the Securities and Exchange Organization has been entitled to dedicate part of its resources to the FSF with the aim of reviving the equity market.
The TSE’s unprecedented nosedives have forced authorities to consider creating a new financial institution in a bid to help the equity market in critical situations and prevent persistent bearish trend from dominating the stocks. The decision, which was arrived at following intensive talks between the Securities and Exchange Organization, the cabinet ministers and other associated entities, was ratified by the parliament last month.
Dismal prospects due to the prevailing ambiguities at the equity market have been lately squeezing out the performance of listed companies, though the ongoing nuclear talks and positive speculations about a comprehensive nuclear accord changed TSE's dented sentiment.
The US and Iranian negotiators are set to resume talks Monday in the hope of sealing a tentative political agreement on Tehran’s nuclear program, though western diplomats say serious negotiations over the substance of a deal would still be needed in the months ahead, Wall Street Journal reported.
The announcement of a political agreement before an end-of-March deadline, could spur expectations that Iran and the P5+1 group is on track for a deal — an advance they hope would buy them fresh time to reach a final, detailed nuclear accord by June 30.
